Yes the Fed learned that lesson in the repo markets in 2019. https://ig.ft.com/repo-rate/ Perhaps this is why they're increasing reverse repos, which recently have amounted to about USD500B. Maybe this is a way to test and see what happens with short-term liquidity removal. https://www.reuters.com/article/us-usa-fed-reverse-repo-idUSKCN2DL29J
IMO, inflation will get out of hand when we cross the line from cost push, to demand pull. The latter happens when we see wages rising.
Hells to the Y-E-S. I know several people that I care about that are invested in 'safe' bonds and holding USD/Euro. Safety is OVER for that shit. 5-4-3-2-1, NOW.
As a bond trader for 25 years and a residential real estate investor for 25 years, I believe Blackrock is only looking at the current cap rate of 8% to 10% for decent A and AA properties. The cash flow will continue but depreciation is almost certain as rates rise. In the long run, real estate will outperform all other asset classes as inflation rears its ugly head. People have to have a place to live but can sacrifice on clothes, food, and cars for a while.
Dog groomer charged me 34% more yesterday than the previous visit (in Arkansas) All the bailouts and money printing has to be absorbed somewhere. Nevermind extremes like Venezula - look at Argentina at 50% inflation. People think it can't happen here, but it can. https://www.bloomberg.com/news/arti...-leads-argentina-down-path-that-failed-before https://www.reuters.com/world/ameri...rs-hazy-future-drives-price-hikes-2021-06-03/
Create money out of thin air, then proceed to buy up hard assets. I think everyone should have a problem with this.
I think the news is a pretty good indicator it's slowing down. Everything is priced in than the stupid media starts feeding you their stale garbage. Sure there's more inflation down the road, but atleast for now, I feel we're gonna get a small rally in the dollar. When your FB starts recommending you "inflation hedges", you know the trend's slowed down or is probably over.
Thank goodness I am older and have gone through enough cycles, with the exception of a full blown depression which we are long overdue, history repeats itself. And as traders or long term investors, great time NOW to read and learn of USA cycles of inflations and find best places to move funds and learn how to hedge. There are reasons why most people are sinking in life and very few at the top.